Ekokem Corporation's Interim report January - June 2015

Ekokem Group’s Nordic Circular Economy strategy progresses well.

09/15/2015

Ekokem Corporation's Interim report January - June 2015

Ekokem acquired in January 2015 a Danish environmental management company NORD. The integration of Danish operations to Ekokem Group progresses as anticipated. The construction of Circular Economy Village at Riihimäki progresses as planned. Once finished by end of 2016, the Circular Economy Village, consisting of an eco-refinery, plastics refinery and a bio refinery, will enable more efficient recycling of household and municipal waste. Ekokem investments into Circular Economy Village will amount to some EUR 25 million.

Ekokem hosted a seminar “Towards Circular Economy” in June. In the seminar the group granted in total EUR 150 000 for 7 different environmental and waste management research projects supporting circular economy.

2nd Quarter 2015 summarised

The Group profitability remained at a good level during Q2. The low prices of electricity, district heat and recycled materials have impacted the profitability during the first half of the year. Additionally Group profit is impacted by one-off items related to NORD acquisition transaction and integration.

Ekokem Group key financials Q2/2015 (Q2/2014)

  • Net sales increased to EUR 62.5 million (44.7)
  • BITDA amounted to EUR 9.4 million (7.7), EBITDA margin was 15.0% (17.2%)
  • quity ratio at the end of period was 38.6% (54.4%)
  • net debt was EUR 121.6 million (52.3)

The Ekokem Group Board of Directors chose LL.Lic. Karri Kaitue as the new CEO of Ekokem Group. He started in the position on August 3rd, 2015 and at same date gave up his position in the Board of Directors. CEO Kaitue: “I am grateful for this opportunity to start working for the circular economy strategy together with our committed and skilled personnel. Our journey towards the leading Nordic circular economy company took a big step with NORD acquisition. Operative focus has been on integration, which has progressed as planned. Unfortunately the international markets for hazardous waste have been challenging and has led to low capacity utilization over the summer.”

Ekokem, Boliden Harjavalta Oy and Ekokem-Palvelu Oy signed an agreement for constructing final disposal areas for Boliden process waste. The value of the projects amount to some EUR 13 million and are planned to be finalized by end of 2016.

Major events after the end of the period

The co-operation between the Organisation for the Prohibition of Chemical Weapons (OPCW) and Ekokem Group related to the treatment and disposal of hazardous waste generated in the destruction of the chemical weapons program in Syria was successfully finalized in July as planned. In accordance with the co-operation agreement Ekokem treated and disposed of in total some 6000 tonnes of waste.

Outlook

Market outlook for international hazardous waste volumes may continue more challenging than anticipated.